The cost of living varies greatly for one city or part of the country . An example would be real estate prices are more the twice as much in San Fran compared to philly. That is the problem with the idea of central planning is you have a one size fits all . This a big country with different economies in different parts of the country.
I have to say no. But, I also have to say that I am not an expert in this area.
The reason I say no is because people could use the same loop holes for cheap labor as sending your company overseas.
Would this have effects on taxes or would taxation be the reslove to problems that could occur?
Lower min wage means , business can hire more people . This means people would move to cities that have better economic condition. When it comes to min wage , the devils in the details . Cites that talk of rasing the min wage already have a high cost of living. Most of the costly cities are in CA , they have some of the highest taxes which is why rents are going up .